Insurance Bad Faith: A Quick Guide
People are depending on insurance companies because they will be needing them when they need the help the most. It may be a car insurance of a car accident or a medical insurance for a serious illness or injury. After all, people do not pay for insurance premiums every now and then because they feel like it. They do this because they know that they will be needing their help soon when events happen.
But it is sad to think that insurance companies are not doing their duty when the sudden accident happens. They look for reasons for them not to be liable of any benefits to their customers. When these insurance companies are wriggling their way out of the contract, they are acting in bad faith.
Legally speaking, insurance bad faith is “describes a tort claim that an insured person may have against an insurance company for its bad acts.” In most countries such as United States, insurance companies are bound a duty of good faith and fair dealing to those they insure. It is an expected duty every time an insurance company has entered into a contract with an individual. When an insurance company failed to do so, they can be sued with a breach of contract claim and a negligence claim. Aside from the fact that they did not uphold their end of the bargain, insurance companies can be sued for civil wrong doings.
In the end, the insurance companies will be forced to pay much more damages because of their bad faith aside from the face value of the original contract.
Health insurance, auto insurance, life insurance and long term disability insurance are the types of insurance carriers that can be held liable when acted in bad faith. Every kind of insurance carriers are expected to honor their agreements and to act in good faith with their policy holders. Trying to look for a way out of the due performance they opt to do is acting in bad faith and they can be sued because of this.
An insurance company that acted in bad faith is bound to pay for the emotional and financial damage it cause to its policy holders. For you to achieve this, a highly qualifies lawyer is needed to calculate for the damages. This lawyer will help you with everything about the responsibility of the insurance company and to bring the case to court if needed.
Take an immediate action if you look on the policy and realized that you are not given with a coverage you should receive. Do not leave this thing behind and look for a qualified lawyer for you.
Source: legal resources